Starting in 2014, most individuals are required to have Minimum Essential Coverage (MEC) or have an exemption from the requirement to have coverage. If you do not have MEC or an exemption, you may have to make an Individual Shared Responsibility Payment to the IRS.
One of the types of exemptions that individuals can apply for is the Affordability Exemption. If coverage would cost more than 8.16% of your household income, you can claim an affordability exemption.
- To claim the affordability exemption because 2018 Marketplace coverage was considered unaffordable for you, you will need to know:
1) The premium for the lowest cost Bronze plan available to you in 2018. This information is available in the table linked below:
2) How much financial assistance you were eligible for. This is determined based upon the premium of the “Second Lowest Cost Silver Plan” available to you in 2018. Look up the premium for the second lowest cost silver plan in the table below.
- You will need to complete IRS Form 8965-Health Coverage Exemptions to claim the affordability exemption when you file your taxes
- To claim an exemption because 2018 Marketplace coverage was considered unaffordable to you, you will need to complete Form 8965.
- To complete this form, you will need to know the premiums for:
- You do not need to complete IRS Form 8965 if you already have an Exemption Certificate Number (ECN)
- If you already have an Exemption Certificate Number (ECN) for this exemption, you do not need the information in these tables. Just enter your ECN on Part 1 of Form 8965.